Dan Flynn is the writer of The Corn & Ethanol Report, a daily market letter covering grains, energies, and various global issues that are the driving force and backbone of the commodity markets. Contact Mr. Flynn at (312) 264-4374
We kickoff the day with Building Permits Prel, Building Permit MoM Prel, Housing Starts, and Housing Starts MoM at 7:30 A.M, Redbook YoY at 7:55 A.M., 20-Year Bond Auction at 12:00 P.M., API Energy Stocks , and International Monetary Market (IMM) Data at 3:30 P.M.
On the Corn Front Midwest harvest is gathering steam with 9% harvested. Early corn and soybean yields have been variable, but disappointing. Estimated open interest rose 16,226 contracts in Monday’s action. We had more disappointing housing data, while crude rallied 20 2023 highs amid tight supplies and US and global demand. The new question of the day is Russia going to allow the Ukraine port of Chornomorsk to export 20MT’s of wheat or this is a trick by Putin. Weather in the Midwest will get rain today but unseasonable warmer and drier temperatures are forecasted to move in as soon as tomorrow. In the overnight electronic session the December corn is currently trading at 470 which is 1 and a ½ of e cent lower. The trading range has been 471 ½ to 467 ¾.
On the Ethanol Front both US ethanal and biodiesel producers their best margins in years. Brazil’s Atvos plans to record ethanol ethanol investment after restructuring on the heels of concluding bankruptcy protection plan, sugar cane company Atvos SA is putting in place the biggest investment program in its history to increase ethanol production in Brazil. Also Brazil has offered to share ethanol manufacturing technology with India, in an attempt to put an end to their long running disagreement over the sugar industry, sugar which is relied on in manufacturing in those parts if the globe. With fast moving investments the ethanol futures remain dead in the water with no trades or open intertest.
Have A Great Trading Day!